Refund Policy

[EAP]

I only require two weeks notice for termination - but most of my families pay a month in advance - I don't want to end up having to give a refund - does anyone have a policy in their handbook that addresses this or should I eliminate monthly payments and only accept up to two weeks of payments?

[EntropyControlSpecialist]

I accept bi-weekly and monthly (4 weeks) and have it in many places (the contract once, the parent handbook in multiple places, the agreement that states they read the parent handbook) that a refund will not be issued in any event including termination.

I had to do this after getting burned.

[MarinaVanessa]

I only require two weeks notice for termination - but most of my families pay a month in advance - I don't want to end up having to give a refund - does anyone have a policy in their handbook that addresses this or should I eliminate monthly payments and only accept up to two weeks of payments?

If your termination policy 2 weeks and a client pays a month in advance then gives you a 2 week term notice, then you are obligated to pay the remainder back.

Either change your policy to include a NO REFUND policy or stop accepting a month of payment in advance ... whichever you want to do.

I personally would not feel right keeping any money that I had not earned other than my 2 week term notice period. Even if the client did not bring their child the 2 week term period allows me to not lose income during those 2 weeks while I look for a replacement client so that I feel is fair ... keeping an additional week or 2 of child care fees past the 2 week term period doesn't feel right to me especially if I won't be taking care of the child during that time.

[EAP]

If your termination policy 2 weeks and a client pays a month in advance then gives you a 2 week term notice, then you are obligated to pay the remainder back.

Either change your policy to include a NO REFUND policy or stop accepting a month of payment in advance ... whichever you want to do.

I personally would not feel right keeping any money that I had not earned other than my 2 week term notice period. Even if the client did not bring their child the 2 week term period allows me to not lose income during those 2 weeks while I look for a replacement client so that I feel is fair ... keeping an additional week or 2 of child care fees passed the 2 week term period doesn't feel right to me especially if I won't be taking care of the child during that time.

I agree about feeling wrong - but I also don't want to do refunds if I can avoid it.

[EntropyControlSpecialist]

If your termination policy 2 weeks and a client pays a month in advance then gives you a 2 week term notice, then you are obligated to pay the remainder back.

Either change your policy to include a NO REFUND policy or stop accepting a month of payment in advance ... whichever you want to do.

I personally would not feel right keeping any money that I had not earned other than my 2 week term notice period. Even if the client did not bring their child the 2 week term period allows me to not lose income during those 2 weeks while I look for a replacement client so that I feel is fair ... keeping an additional week or 2 of child care fees passed the 2 week term period doesn't feel right to me especially if I won't be taking care of the child during that time.

In that case, I would give back the 2 weeks beyond their final 2 weeks notice. It doesn't state that I will nor would I ever include that in my contract/parent handbook/etc. but I would. I've done similar things in the past.

[AmyKidsCo]

I also have in my policies that tuition fees are not refundable. Period. My thought is that if they're really concerned about it they should wait until half-way through the month before giving their 2 weeks notice.

[daycaremum]

What is so bad about giving a refund of money that the deserve back? Perhaps it is a budgeting issue? I don't spend money that I haven't "earned" yet. What I mean by that is that I wouldn't spend all the money that they pay in advance, perhaps you should have a reserve for just in case situations.
To have savings is a good idea regardless of what you do for a living.

[itlw8]

I do refund the money BUT I make sure it has cleared first so they may need to wait a few weeks to get the refund. Just like going to Walmart the check has to clear unless they paid in cash.

[EAP]

What is so bad about giving a refund of money that the deserve back? Perhaps it is a budgetplace.ssue? I don't spend money that I haven't "earned" yet. What I mean by that is that I wouldn't spend all the money that they pay in advance, perhaps you should have a reserve for just in case situations.
To have savings is a good idea regardless of what you do for a living.

Not a budget issue - but thanks for the concern??

Just don't want to get into a back and forth with money and families and wanted to know what policies people have in place.

[EAP]

I decided to only allow 2 weeks worth of payments starting in May. Thanks for the feedback -I already have a no refunds policy for deposits and lack of proper termination notice, I may add no refunds starting next year and that way people will stay through their last paid day.

[daycaremum]

Maybe just require a month's notice of termination.

[EAP]

Maybe just require a month's notice of termination.

That was my original policy when I started but when a situation wasn't working it prolonged it so I switched to 2 weeks.

[MNMum]

What is so bad about giving a refund of money that the deserve back? Perhaps it is a budgeting issue? I don't spend money that I haven't "earned" yet. What I mean by that is that I wouldn't spend all the money that they pay in advance, perhaps you should have a reserve for just in case situations.
To have savings is a good idea regardless of what you do for a living.

I agree with this.

[EAP]

I agree with this.

This isn't a budgeting issue, but rather a paper trail for taxes that is my concern - if a parent pays me I have an invoice - if I give a refund I'm not sure how/where to track that. Its just wanting to avoid complications.

[littlemissmuffet]

Why do you only require two weeks notice? I know that's the norm here, but most providers here charge weekly.

I charge month to month, in advance. And as such, I require one full calandar months notice.


Edited: OK. I see where you said you had a bad situation once that caused you to change it to 2 weeks as opposed to a month. But, I would personally move it back to a month. If I term/a client terms and they misbehave or break policy even once during the month termination period, they are termed immediately. That might prevent any future situations if you go back to a month notice.